It seems like the 1.99$ fee will only be applicable if you get your book delivered via Whispernet!

Quote:

1-Click to order your Kindle Edition. Your purchase will be sent automatically and wirelessly to the Kindle via Amazon Whispernet. No cables, no computer, no syncing. If you send your purchase to an iPhone or iPod touch, it will be available in your Kindle for iPhone application.If you are outside a wireless coverage area, or are outside the U.S. and want to avoid international fees, select "Transfer via computer" when you Buy now with 1-Click. You can then download the Kindle Edition to a computer and transfer to your USB connected Kindle.

On the other hand, you will be able to buy your books with your homeadress and home creditcard.

Oh, and what about the Kindle app?

Given the simple workaround (sending gift cards to yourself) and the country restrictions and higher prices: Why would anyone be interested to switch form the former process of purchasing directly in the US?
Only arguments for me would be a.) wireless download and b.) country specific content (German newspapers or magazines for example).

We are excited to now ship Kindle to Austria. Customers in Austria will enjoy:
Books in Under 60 Seconds: Think of a book and you could be reading it in under a minute

Free Wireless: Free 3G wireless lets you download books right from your Kindle. No monthly fees, service plans, or hunting for Wi-Fi hotspots. See Coverage Map. See Wireless Terms and Conditions

Large Selection: Over 290,000 English-language books to choose from; plus U.S. and international newspapers and magazines

Low Book Prices: New York Times® Best Sellers and New Releases are $11.99 to $13.99 (prices include VAT), unless marked otherwise. You'll also find many books for less - over 70,000 titles are priced under $5.99

I don't actually want a Kindle ... I want to read Kindle Books on my iPhone!!

I wonder if that charge is the real reason for prices being a minimum of $11.99 everywhere else, they have simply rolled the $1.99 into the price and then countries such as the uk that have potentially higher prices it is the extra amount on top of the $11.99 that is due to local taxes.

Slashgear says that the kindle will be shipped directly from the US so buyers will be responsible for shipping, import taxes and duty fees.
"A UK buyer, for instance, can expect $20.98 shipping and $45 in fees, bringing the total cost to $344.98."

In the UK this is going to shake things up. I love my Sony 505, and my efforts at the moment are centred around justifying and importing a red 600. But $1.99 surcharge or not, this can only be good news for eBooks.

My big fear is that someone (Apple?) actually gets a tablet right, and these expensive eInk readers fall by the wayside, and our retinas are back to being fried alive. I think this move makes that less likely, and I'm stunned at the figures Amazon are quoting for Kindle editions versus dead tree versions.

You can buy US iTunes gift certificates (I bought them from a commercial provider, paid US 52.41 for US$ 50 face value), then you can download the Kindle app. And you also get your music much cheaper then in other countries, besides many things are only offered at US itunes.